“Is Islamic finance an alternative to conventional finance” discuss.

Islamic finance is one of the fastest-growing segments of today’s banking industry. There has been an increased interest in Islamic finance due to the recent Global financial crisis which saw the end of an economic boom which is inevitable aspect in Capitalism. This accruing pattern of boom and bust is down to the principles of capitalism and its proneness to crisis. It is said the crisis are a consequences of speculations, risky lending and high interest rates on short term loans.

Since the financial crisis of 2008 the search for an alternative economic model had shone the light on Islamic finance due to the possibility of avoiding a financial crisis. Therefore I want to investigate how the principles of no interest rates and equity based finance could improve the current financial system and avoid future financial crisis. I would also like to investigate if Islamic finance is a real alternative to conventional banking outside the Islamic world and whether it provides the much needed stability in banking sector.

Farhia Abukar

2nd Year Political Economy

Isir Hussein

2nd Year Political Science

 

 

 

 

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